Dubai’s real estate market 2025 has experienced a slight dip in property prices, with a 0.57% decrease recorded in January. This marks the first price drop since mid-2022, signaling the beginning of a potential market stabilisation. Despite the dip, the Dubai real estate market continues to show resilience, with strong sales volumes and continued interest in off-plan projects, reflecting evolving real estate price trends in Dubai.
According to Property Monitor’s latest monthly market report, January 2025 saw a reduction in property prices to Dhs1,484 per square foot. This decline is the first of its kind in over two years, after a sustained period of price growth. Despite the price dip, the Dubai real estate market recorded the highest-ever sales volume for the month, with 14,413 transactions. However, sales volumes decreased by 4.6% compared to December 2024.
The off-plan sector continues to be a key driver in the Dubai real estate market, with 53 new projects launched by 37 developers in January, introducing 12,400 new units. Off-plan transactions made up 52% of total sales in January, though this segment saw a 17.7% decline compared to the previous month.
Furthermore, mortgage transactions grew by 6.8% month-on-month, indicating continued buyer confidence. Loan-to-value (LTV) ratios remained stable, reflecting the UAE Central Bank’s consistent enforcement of regulations.
Zhann Jochinke, COO of Property Monitor, commented on the market shift, stating, “After four years of continuous growth, Dubai’s real estate market is starting to show signs of stabilisation. Affordability constraints and market maturity are beginning to reshape the landscape. Real estate price trends in Dubai will likely evolve from rapid growth to a more balanced, sustainable trajectory.”
The slight dip in prices in the Dubai real estate market in January 2025 could indicate the market’s transition to a more sustainable growth phase. While price adjustments are expected as part of a natural market cycle, strong transaction volumes and an expanding off-plan market suggest that the sector remains dynamic. As Dubai’s real estate market moves forward, a balance between supply and demand will determine its future direction in 2025 and beyond.
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